Money worries among Scottish employees are costing the country’s economy more than £4 billion a year in lost productivity and recruitment expenses, new analysis shows.
The figure estimated at £4.36 billion is part of a £51 billion a year cost to the UK economy highlighted in a Yorkshire Building Society and Salary Finance report.
Financial pressures make employees significantly less productive, unable to finish daily tasks and more likely to change jobs, the analysis suggests.
They estimate the impact on employers’ productivity costs between £3.3 billion and £4.36 billion a year.
Two in five UK employees worry about their finances and the UK saving to income ratio is at its lowest level since 1963.
The two organisations argue that the government and employers should treat financial well-being as being on a par with mental and physical wellbeing by providing support and schemes where employees can save directly from their pay.
Mike Regnier, chief executive of Yorkshire Building Society, said: “The economic impact of financial insecurity cannot be overstated. It’s clear that we are a nation of spenders, not savers as highlighted in our workplace savings report.
“This can cause people issues with paying an unexpected bill or coping with sudden loss of income due to sickness or unemployment.
“But on top of the personal cost, this is an issue that affects employers too.
“Employees with money worries could cost employers in Scotlland up to an estimated £4.36 billion a year.”
